Energy Ministry cracks down on debtors

Eastern Economist

KYIV - The Energy Ministry confirmed on May 26 that, effective June 1, it will cut off all electricity and heat supplies to consumers unable to make payments.

The ministry said that, under the new policy, the directors of enterprises and organizations that do not pay for the energy and heat they consume will "pay" in a different way. The ministry appealed to all debtor enterprises and households to pay off back bills immediately to avoid having services cut. The only exceptions to the new policy will be hospitals and orphanages, prisons, combat-ready military facilities and residences for the disabled and senior citizens.

The Cabinet of Ministers previously ordered energy distributing enterprises to sign contracts with consumers under which liens could be placed on property if bills go unpaid. Back bills are to be paid, in cash, under special agreements with the Energy Ministry.

In a further bid to reform energy payments, the government said barter payments can be made only under licenses approved by the State Electric Power Production Commission.

Copyright © The Ukrainian Weekly, June 8, 1997, No. 23, Vol. LXV

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